Are Amazon And Its Tablet In Trouble?

Cowen analyst Kevin Kopelman trimmed his revenue estimates for Amazon (NASDAQ:AMZN) on Tuesday, citing the impact of a weakening euro and more conservative sales forecasts of the Kindle Fire tablet as well as the Kindle e-reader.

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Kopelman sees Kindle Fire shipments of 12 million units this year, down from 14 million, noting that the device will face increased competition from the newly launched Google (NASDAQ:GOOG) Nexus 7, other similarly priced tablets, and a widely rumored iPad Mini from Apple (NASDAQ:AAPL). The Amazon tablet, launched last year, had made quite a splash in the holiday quarter.

The analyst lowered his full-year estimate on Kindle Fire sales to 12 million units from a prior forecast of 14 million and cut his revenue estimate by 2 percent this year and 3 percent next year. Kopelman also cut his growth forecast for the Kindle e-reader to 3 percent from a prior estimate of 30 percent, calling his earlier figure “unrealistic.” The e-reader has been hurt by Amazon’s focus on the Kindle Fire. Retail chain Target (NYSE:TGT) also removed the device from its stores in May.

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However, Kopelman maintained his Outperform rating on the stock.